Key insights
- Fed's Bowman anticipates three rate cuts before 2026 to bolster the labor market, diverging from the consensus of one cut this year. This suggests a potentially more dovish stance than currently priced into the market, which could provide a bullish signal for equities as lower rates typically support risk assets.
NEW YORK, March 20 (Reuters) - Federal Reserve Vice Chair for Supervision Michelle Bowman said Friday she sees a series of interest rate cuts happening this year amid concerns about labor market softness.
“I’m still concerned about...the job market,” Bowman said in an interview on the Fox Business Network. "I’ve written three cuts in for before the end of 2026 to hopefully support the labor market,” she said. At this week’s Fed policy meeting officials collectively penciled in a single easing for the year.